••Billionaire backs Dangote refinery in row with DAPPMAN, urges depot owners to modernise or sell as subsidies fuelled rent-seeking
Billionaire businessman Femi Otedola has accused actors in Nigeria’s former petrol subsidy regime of siphoning more than N2 trillion through dubious claims linked to depot licences, and has gone public in support of the Dangote Petroleum Refinery in its dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
In a statement issued on Monday, Otedola said he personally warned then‑President Goodluck Jonathan that the subsidy system was being manipulated to benefit depot owners, with DAPPMAN members emerging as primary beneficiaries. “Over N2 trillion was siphoned through questionable claims, all tied to depot licenses,” he said, adding that the policy “encouraged rent‑seeking and corruption” and did not reward transparency or innovation.
The comments come after DAPPMAN on September 16 accused the Dangote refinery of engaging in market‑disruptive practices, alleging the company’s fuel price reductions were timed to weaken competition rather than driven by patriotic motives. Dangote has countered the accusation, claiming DAPPMAN demanded an annual subsidy of N1.5 trillion so its members could match the refinery’s gantry prices at their depots.
Otedola also challenged assertions that depots are major job creators. “A typical depot employs perhaps five people, gatekeeper included. In contrast, a single filling station can provide jobs to dozens of Nigerians—from pump attendants to cashiers, security personnel, and cleaners,” he said, arguing that depot infrastructure was built for a fuel import economy that Nigeria is moving beyond.
He urged depot owners to pivot toward last‑mile retail, sell assets, restructure, or invest in new value chains rather than “holding on to tanks built for a fuel import economy that no longer serves us.” Otedola warned that failure to adapt could render depot operators irrelevant or bankrupt. He also suggested that, if DAPPMAN truly believed in competition, they could pool resources to acquire the Port Harcourt refinery and try to succeed where the Nigerian National Petroleum Company (NNPC) Limited had failed.
